Personal representatives of an estate have important responsibilities. As fiduciaries, they must act in the best interests of the estate and its beneficiaries, not their own. They must uphold various fiduciary duties under Georgia law.
But what happens when they don’t? Here’s what you need to know if you suspect a breach of fiduciary duty.
What are fiduciary duties in probate?
Personal representatives – both executors and administrators – are entrusted with significant responsibilities. They must safeguard assets, pay debts, conduct inventories, and distribute property according to the will or state law.
Georgia law establishes fiduciary duties for personal representatives. These standards require them to act honestly, avoid conflicts of interest, and manage the estate prudently, among other responsibilities. They cannot use estate assets for personal gain or favor one beneficiary over another. They also have an overarching duty to “settle the estate as expeditiously and with as little sacrifice of value as is reasonable under all of the circumstances.”
Breaches of fiduciary duty can take many forms, such as:
- Conflicts of interest – Situations where personal or business interests could interfere with acting solely for the estate
- Misappropriating funds – Using estate money for personal expenses
- Failing to provide an accounting – Not sharing financial records with beneficiaries
- Ignoring court deadlines – Missing required filings or failing to comply with probate rules
- Self-dealing – Selling estate property to themselves or family members at below-market value
- Neglecting assets – Allowing property to deteriorate or failing to insure valuable items
- Engaging in favoritism – Giving one beneficiary or heir preferential treatment over others
Even mistakes made through negligence – not just intentional misconduct – can amount to a breach.
Why it matters for beneficiaries and heirs, and what they can do about it
Beneficiaries and heirs have the right to expect transparency, fairness and full compliance with Georgia law. When a personal representative fails to uphold their fiduciary duties, their breach can reduce the value of the estate, delay distributions, create unnecessary conflict and result in other consequences.
When beneficiaries have grounds to believe a breach of fiduciary duty has occurred, they have options. Depending on the circumstances, those options may include:
- Requesting an accounting of estate assets and liabilities
- Asking the court to compel compliance
- Requesting the court to remove the personal representative and impose sanctions
- Taking legal action to hold the personal representative personally liable and seek damages
If you believe a personal representative has breached their fiduciary duties, it’s important to seek professional legal guidance. Acting quickly and strategically is important, as delays or missteps can make it harder to recover assets or prove misconduct. An experienced lawyer can help you weigh your options and pursue effective legal remedies.
